Alcoa Book Value Per Share vs. Net Income
| AAI Stock | 71.08 0.84 1.20% |
For Alcoa profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Alcoa to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Alcoa Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Alcoa's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Alcoa Inc over time as well as its relative position and ranking within its peers.
Alcoa |
Alcoa Inc Net Income vs. Book Value Per Share Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Alcoa's current stock value. Our valuation model uses many indicators to compare Alcoa value to that of its competitors to determine the firm's financial worth. Alcoa Inc is number one stock in book value per share category among its peers. It also is number one stock in net income category among its peers . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Alcoa's earnings, one of the primary drivers of an investment's value.Alcoa Net Income vs. Book Value Per Share
Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.
Alcoa |
| = | 20.32 X |
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Alcoa |
| = | (651 M) |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Alcoa Net Income Comparison
Alcoa is currently under evaluation in net income category among its peers.
Alcoa Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Alcoa. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Alcoa position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Alcoa's important profitability drivers and their relationship over time.
Use Alcoa in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Alcoa position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Alcoa will appreciate offsetting losses from the drop in the long position's value.Alcoa Pair Trading
Alcoa Inc Pair Trading Analysis
The ability to find closely correlated positions to Alcoa could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Alcoa when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Alcoa - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Alcoa Inc to buy it.
The correlation of Alcoa is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Alcoa moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Alcoa Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Alcoa can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Alcoa position
In addition to having Alcoa in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Communication Services Thematic Idea Now
Communication Services
Companies that provide networking, telecom, and long distance services. The Communication Services theme has 45 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Communication Services Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Tools for Alcoa Stock Analysis
When running Alcoa's price analysis, check to measure Alcoa's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Alcoa is operating at the current time. Most of Alcoa's value examination focuses on studying past and present price action to predict the probability of Alcoa's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Alcoa's price. Additionally, you may evaluate how the addition of Alcoa to your portfolios can decrease your overall portfolio volatility.